Market Commentary | Jan 04, 2023
4Q2022 Market Commentary: Shifting Winds
Michael J. AroestyCFP®
CFP®
While equities gave back part of their early quarter gains throughout the holiday season, the fourth quarter still brought investors the much-needed gift of a market rebound.
With a new year comes a new market backdrop. As we enter 2023, inflation concerns of 2022 have been replaced by the potential for economic contraction amid rising interest rates, sticky input costs, and slowing demand. Despite these fears, we believe markets enter the year at a healthy starting point—earnings and dividend yields have increased, and bonds are finally offering investors attractive yields. Although we anticipate equity markets to remain bumpy and uneven, fixed income investments are as compelling as they have been in over a decade.
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Michael J. Aroesty
CFP®